Musk Says SpaceX Has Closed $40 Billion Debt Deal for AI Chips

Elon Musk said SpaceX has closed $40 billion in debt financing to buy graphics processing units used to power artificial intelligence systems.

In a post on X on Sunday, Musk said the company had closed the financing, noting that SpaceX is investment grade and brings in revenue from its Starlink satellite internet and rocket launch businesses.

In a follow-up post, he said the financing, made up mostly of callable debt for GPUs, is expected to arrive in the first and second quarters of 2027.

Bloomberg reported earlier, citing people familiar with the matter, that SpaceX was in talks with banks and investors to raise $40 billion to purchase Nvidia chips. According to Bloomberg, the proposed financing would use a special purpose vehicle to keep the debt off SpaceX's balance sheet and preserve its investment-grade credit ratings, with Goldman Sachs leading talks with investors including Apollo Global Management over the structure.

Musk also said debt markets have largely shut off financing for companies without substantial revenue outside AI data centers. He predicted that more than 200 so-called neocloud companies, which provide cloud computing infrastructure built specifically for artificial intelligence and machine learning workloads, would face widespread failures and consolidation, with only a small number surviving.

Source: CNBC